“Rising development and construction costs as well as regulatory hurdles, however, are impeding growth in some markets, causing some builders to look outward in attempt to meet buyers’ affordability needs.”

There has been a lot abuse and some state like Florida have created a regulatory office to go after abusers.It also depends on how you might approach it.

I always get a little concerned about urban STR's just in general due to constant ebbs and flows in the regulatory environment... and NIMBY's.

@Chris Seveney @Andy Mirza I would think one benefit of having a neutral 3rd party servicing your loans is that when it came time to sell your paper, the quality of the payment history couldn't be called into question by a potential note buyer, vs. the note buyer having to take your word for it if you are doing your own servicing.Still, servicing OTHER people's notes might be a business worth looking into, depending upon the potential profits margins vs. regulatory headache. 

We may not see much regulatory action immediately, as it will most likely take years for violations to be uncovered.Enjoy the holidays :)

(Unless they have a permit/approval from regulatory authorities which is near impossible to get)We are so regulated on this, we can't even say, in our ads that trust deed investments are "safe" or "secure" or other words that may lead investors to believe that normal investment risk doesn't exist.That said, a broker could comply with all the new laws, and then if a loan went bad, could AT THAT TIME offer to buy it back from an investor.

DF reformed originations, servicing, credit standards, underwriting standards, communication standards, licensing standards, capital standards, disclosure standards, loss mitigation standards, regulatory overview standards...hopefully you are getting the idea.  

Some ideas from others: · bank loans are not available on some types of properties · the tight lending climate has made bank financing "out of reach" for many · seller financing is an "age old" tradition based on private property rights · these rules would prohibit even partial seller financing - i.e. a "seller second" · according to HUD's "Residential Finance Survey" in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear · an estimated 6 million Americans own a property other than their own primary residence · an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties · 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing · approximately 5% of homes in US are for sale or for lease... seller financing may be key to liquidating this inventory The continued success of our industry as we know it is threatened by these proposed regulatory changes.

I am not a lawyer and this is not legal advice, but LLC's do offer some legal protection, but failure to comply with different regulatory requirements for them can result in them being "pierced".

The DC Council is currently reviewing a bill that would create a regulatory system for short-term rentals, such as those found on Airbnb and HomeAway.